As a small business, there are several loan options available. Each of them has distinct benefits. The key is finding one that fits best with your current situation. You’ll have to navigate each of them and weigh your choices. The loan options you have available range from traditional types to alternative lending options.
When it comes to getting all the options you need for your business, Clarifi is your solution. We offer different types of loans aimed to help small businesses get the financing they need.
PPP Loans
The Paycheck Protection Program was a government-backed loan program made available in 2020. It was one of the programs put in place to help businesses and other organizations suffering from the effects of the coronavirus. It was a part of the CARES Act.The loan helps you get enough money to keep workers on your payroll.
In round 2 of PPP a second draw loan was offered with the same terms as the first. It’s an extension to help assist businesses from the long-drawn effects of COVID and lockdowns. It essentially restores your working capital.
SBA Loan
The SBA is another type of loan offered to small businesses with partial backing from the government. They can provide some advantages, thanks to flexible terms and low interest rates. It’s one of the best ways of getting financial help for a business. It effectively acts like small business grants. There are several types of SBA loans available:
- SBA 7a: The 7a is a loan for purchasing equipment, gathering working capital, and expanding a business. You can get a loan of up to $5 million.
- SBA 504: A 504 is a loan so you can purchase long-term assets like land, facilities, and machines. You can get a loan worth up to $5.5 million.
- SBA Disaster Loans: A loan to help repair damage incurred after a disaster while also providing money for operations.
Choose Wisely
Getting a loan is a long-term commitment for your business. It means that you understand the risk and have the confidence to pay it off when you profit. If you’re having trouble deciding on the right program for your business, we can help guide you and even offer you some of the best loan programs available.